15 Key Performance Indicators for Running a Successful Business
What’s up, everybody? Coach Rahz here to discuss a very important and serious topic for business owners looking to grow and scale your business: 15 key performance indicators that will catapult you up the ladder of success. You would be surprised how many entrepreneurs just don’t know the key metrics that they need to know to run a successful business. So today I am going to go over what the 15 key metrics are that we use to run our business and also teach in Fitness Business Mastery.
First, I want to break up these 15 indicators broken into 5 categories: Marketing, Sales, Customer Service, Finance, and Management. Each of these categories contains 3 success indicators that I will go over now.
- Smart business owners know their Cost Per Lead: how much does it cost to generate interest in your program?
- Cost Per Acquisition: how much does it cost to convert that lead into a client?
- Total Campaign Cost: what is the overall cost of running a campaign?
Knowing these metrics allows you to understand how much you can afford to pay to acquire a client and whether it is worth it to run certain campaigns over others.
- Set/Show/Close: how many appointments did you set from your leads? How many of those appointments actually showed up? Of those that showed up, how many did you close? Once you know this, you can tweak your sales processes to obtain a higher percentage of prospects who close. Looking at these numbers every quarter will help you to optimize your sales processes.
- Monthly New Revenue: how much total revenue in sales came in that month?
- EFT: What is the amount that you obtain from EFT transactions? If, for example, you are at $18,000 for the month but your goal is to be at $25,000, you know you need to get the EFT amount up by $8,000. So you can plan some campaigns and focus on sales that will boost that number up to your goal.
- Active Clients: you should know how many active clients you have at all times, no guessing.
- Clients Lost: you want to know how many clients you lost in this past month so that you can put in a campaign that will help you retain those clients.
- FEO Conversions: Front-end offers are entry-level offers….you want to know how these front-end offers convert to higher-priced training programs.
- Monthly Revenue: Look at ALL profit centers….not just sales.
- Monthly Expenses: You must know your monthly expenses so that you can ascertain your total profit and make better decisions.
- Net Income: Profit less gross = take-home….that becomes the funds that you can either take a distribution or put back into your business.
- Payroll: How much out of your total revenue are you spending on payroll?
- Total Client Sessions Trained: Too many people don’t know how many sessions they are training. If you sell a 24-training package, how much of this is actually utilized? You want clients to use all of their sessions so that they get the results they want and spread the word.
- Staff Performance: You need to track the performance level of your staff so that you can train and mentor them and grow leaders. The more leaders you grow, the more hands-off you can become in your business.
Hopefully, you found this information useful and gathered much-needed advice on how to grow your business. For more in-depth discussion about these, click on this link and view the video:
If you would like to get some help with this, please join our exclusive Facebook group at WWW.FBMNATION.COM And have an awesome day! Boom!